Head to Head Review: Tuniu (TOUR) and Despegar Com (DESP)

Tuniu (NASDAQ: TOUR) and Despegar Com (NYSE:DESP) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tuniu and Despegar Com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tuniu 0 0 2 0 3.00
Despegar Com 0 2 3 0 2.60

Tuniu presently has a consensus target price of $11.00, suggesting a potential upside of 30.18%. Despegar Com has a consensus target price of $35.80, suggesting a potential upside of 22.39%. Given Tuniu’s stronger consensus rating and higher probable upside, analysts clearly believe Tuniu is more favorable than Despegar Com.

Institutional & Insider Ownership

72.6% of Despegar Com shares are held by institutional investors. 76.1% of Tuniu shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Tuniu and Despegar Com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tuniu -29.69% -22.38% -11.10%
Despegar Com N/A N/A N/A

Valuation & Earnings

This table compares Tuniu and Despegar Com’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tuniu $1.52 billion 0.70 -$349.58 million ($1.33) -6.35
Despegar Com $411.16 million 4.78 $17.79 million N/A N/A

Despegar Com has lower revenue, but higher earnings than Tuniu.

Summary

Despegar Com beats Tuniu on 7 of the 11 factors compared between the two stocks.

Tuniu Company Profile

Tuniu Corporation is an online leisure travel company. The Company offers a selection of packaged tours, including organized tours and self-guided tours, as well as travel-related services for leisure travelers. Its online platform, which consists of its tuniu.com Website and mobile platform, provides product and travel information to enable leisure travelers to plan their travels. Its organized tours offer pre-arranged itineraries, transportation, accommodations, entertainment, meals and tour guide services. Its self-guided tours consist of combinations of flights and hotel bookings and other optional add-ons, such as airport pick-ups. Its other travel-related services include sales of tourist attraction tickets, visa processing services, financial services, hotel booking services and air ticketing services. Its online platform contains travel guides featuring photos, information and recommendations for all destinations it covers.

Despegar Com Company Profile

Despegar.com Corp is an Argentina-based travel agency. The Company’s activities are divided into two business segments: Air, as well as Packages, Hotels and Other Travel Products. The Air division focuses on the sale of airline tickets. The Packages, Hotels and Other Travel Products division includes sales of travel packages with or without airline tickets and hotel rooms, as well as stand-alone sales of hotel rooms, including vacation rentals, car rentals, bus tickets, cruise tickets, travel insurance and destination services. Its destinations include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the United States, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, Uruguay and Venezuela. The Company operates through a number of subsidiaries in Latin America and the United States.

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